PortSide: Logistics industry working on sustainability

Major strides in emissions controls, reduced fuel consumption and energy cost savings were hot topics at last week’s Georgia Foreign Trade Conference, as industry leaders throughout the supply chain put a new focus on sustainable practices.

“American companies and ports are working together to reduce the environmental footprint of the transportation sector,” said GPA executive director Curtis Foltz, who outlined his organization’s sustainability initiatives and participated in a round table panel discussion on the last day of the Sea Island conference.

James Jack, executive director of the Coalition for Responsible Transportation, agreed that “greening” the supply chain is becoming a common theme.

“It’s no secret that shippers have begun to factor environmental performance into their supply chain decisions,” Jack said. “It goes without saying that ports like the GPA have also responded to this challenge. As we have seen, they have implemented a variety of different ways to address air and water quality challenges.”

Totem Ocean Trailer Express President and CEO Anthony Chiarello said his steamship company has two 3,100-TEU container ships under construction to serve their East Coast to Puerto Rico trade. They will be the first container ships designed specifically to burn liquefied natural gas, Chiarello said. TOTE is also converting existing vessels on its Pacific Northwest to Anchorage, Alaska, route from heavy oil bunker fuel to LNG.

Chiarello said point-to-point routes are the logical first step in LNG container ships because refueling stations are easier to establish. While LNG offers approximately 40 percent cost savings, he said, the major impetus was environmental stewardship.

“When you can cut your sulfur burn by 99 percent versus what it would be with bunker fuel, for us, it becomes a classic no-brainer,” he said.

Foltz said the GPA is also considering a move to LNG-fueled vehicles.

“We operate 200-plus marine tractors every day inside the port complex,” Foltz said. “I would suspect in the next two to four years, the vast majority of those will be operating on an alternative fuel other than diesel. We believe that’s going to be either LNG or CNG (compressed natural gas).”

Panelists also discussed other major trends in sustainability, such as working with their contracted trucking companies to have them shift to newer, cleaner running trucks, as well as a greater emphasis on two-way truck moves.

Traditionally, trucks have carried loaded containers to distribution centers and empties back to the port. Now, however, retailers are working to fill those return boxes in two ways. The first is by partnering with nearby companies that need to move goods for export. Another method is to bundle wood and cardboard packaging, which is then shipped overseas to be recycled.

Rick Gabrielson, director of international transportation for Target, said the retailer has instituted a “no-idle” policy for trucks at its distribution centers. Working closely with carriers, vendors and other partners, Target is transitioning to greener trucks, including test programs for hydrogen- and electric-powered vehicles.

“Sustainability is really integrated throughout our business — from how we build our stores to our distribution centers and supply chain operations,” Gabrielson said.

He said a number of shippers are beginning to convert a portion of their truck fleets to natural gas, and Target is moving that direction. He said cross-country routes are not possible because filling stations are sparse.

“Where you have one-day delivery for stores in the range of 50 to 100 miles, we’re beginning to see more and more interest in it and more organizations taking a look at it,” Gabrielson said.

GPA board chairman Robert Jepson said emission controls will become increasingly important in the transportation industry.

“We expect to see almost a 75 percent increase in freight tons moved between 2000 and 2020,” Jepson said. “This phenomenal growth calls for proactive strategies, and Georgia Ports Authority will remain at the forefront of sustainable practices in the maritime industry.”

Honoring a seaman

In a short ceremony at its February meeting Thursday, the Propeller Club of Savannah honored local World War II veteran Nick Craig, 92, who served on five Liberty ships during the Battle of the Atlantic, evading German U-boats to deliver supplies and equipment to Allied troops in Europe.

Read more about this fascinating merchant mariner in next week’s PortSide column.

Emerging India

World Trade Center Savannah and the Georgia Center of Innovation and Logistics will present “Globalization of India and its Emergence in a New World” from 1-2 p.m. Wednesday at World Trade Center Savannah, 131 Hutchinson Island Road. The event is free, but space is limited.

The program will be led by Ani Agnihotri, program chair of US India Business Summit and managing partner of US India Business and Research Center. He will present information on India’s business sector and the emerging opportunities and challenges for a country poised to have one of the fastest growing major economies and largest populations.

To register or for additional information visit wtcsavannah.org or email tgrubbs@wtcsavannah.org.

Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.

SHIPPING SCHEDULE

These are the ships expected to call on Georgia Ports Authority’s Garden City and Ocean Terminals in the next week. Sailing schedules are provided by Georgia Ports Authority and are subject to change.